The Ethereum Foundation (EF) has officially concluded a major organizational overhaul that has been unfolding over the past year and a half. As part of the transformation, the foundation reduced its workforce by approximately 20%, eliminating 54 positions while introducing a new operational model designed to improve execution and accountability.
The move follows months of leadership changes, strategic reviews, and growing discussions within the Ethereum community about how the foundation should evolve as the network enters a new phase of maturity and institutional adoption.
Employees affected by the layoffs will receive severance packages based on either local legal requirements or one month of salary per year worked at the foundation, whichever is higher. The EF also pledged career transition support and grants to assist departing staff.
New Five-Cluster Model Takes Center Stage
At the heart of the restructuring is a completely redesigned operational framework built around five specialized clusters, each focused on a specific area of Ethereum’s ecosystem.
The Protocol Layer will oversee the development and security of Ethereum’s core infrastructure, including work on post-quantum security, zkEVM technology, censorship resistance, scalability, and privacy enhancements.
The Access Layer focuses on ensuring users can interact with Ethereum without relying on centralized intermediaries. The foundation described its mission as maintaining a “zero-option” standard, ensuring decentralized alternatives always remain available.
Meanwhile, the User Layer is tasked with keeping Ethereum development aligned with the needs of real users, businesses, and organizations operating on the network.
Leadership Changes Mark End of an Era
The restructuring concludes a turbulent 18-month period that saw significant leadership turnover at the foundation.
Ethereum co-founder Vitalik Buterin initiated major leadership reforms in early 2025 amid calls for change from influential figures within the ecosystem, including Joseph Lubin.
Following those reforms, Hsiao-Wei Wang and Tomasz Stanczak were appointed co-executive directors. However, both have since departed, joining a growing list of notable exits that includes senior protocol developers, researchers, and team leaders.
Several former EF contributors have already begun pursuing independent initiatives outside the foundation.
Ethlabs Emerges as New Institutional Growth Initiative
Just days before the restructuring announcement, a new Ethereum-focused research and development organization called Ethlabs launched with backing from Joseph Lubin, Bitmine, and SharpLink.
The organization aims to accelerate Ethereum’s institutional adoption and appears closely connected to several former Ethereum Foundation researchers.
The emergence of Ethlabs highlights how Ethereum’s development ecosystem is increasingly extending beyond the foundation itself, creating a broader network of organizations contributing to the blockchain’s future.
Ethereum Foundation Refocuses for the Next Decade
The foundation has repeatedly stated that its future priorities revolve around advancing CROPS technologies-systems that are Censorship Resistant, Open Source, Private, and Secure.
By adopting a leaner structure and clearer operational focus, the Ethereum Foundation hopes to strengthen its ability to guide the network through emerging challenges ranging from institutional adoption and regulatory developments to privacy, scalability, and quantum computing threats.
As Ethereum continues evolving into a global financial and technological platform, the foundation’s restructuring may prove to be one of the most significant organizational changes in the network’s history.
